President Trump should not nominate NCUA Chairman J MarkMcWatters as CFPB director because the credit union board has beena “cheerleader” rather than a regulator while he has been a member,community bankers said Thursday.

“The CFPB should not be led by the head of an agency that hasacted as a cheerleader for the industry under its oversight,”Camden Fine, president of the Independent Community Bankers ofAmerica, said. “Rather, it requires an even-handed official withexperience in the broader commercial banking sector.”

CU Times reported last week that Trumpis seriously considering nominating McWatters as CFPB director.

Fine said the CFPB would be better served “by individuals whohave hands-on experience overseeing commercial banks and arefamiliar with the full array of regulations under which everycommercial bank must toil.”

An NCUA spokesperson said the agency had no comment concerningFine's statement.

The CFPB director position has been open since Richard Cordrayresigned to run for governor of Ohio. Office of Management andBudget Director Mick Mulvaney has been serving as actingdirector.

Immediately before resigning, Cordray designated Leandra Englishas deputy director. English has filed suit in federal courtcontending that she, not Mulvaney should head the agency.

Sources said that McWatters might be more easily confirmed bythe Senate, since he already has been confirmed as an NCUA boardmeeting.

And Breitbart News, which has been closely aligned with theTrump Administration has termed McWatters a “politically safe”choice.

McWatters also might be more acceptable to Sen. Elizabeth Warren(D-Mass.), the staunchest defender of the bureau in the Senate. Thetwo served together on a congressional oversight board overseeingthe Troubled Asset Relief Program.

“I was on the panel during the time that Sen. Elizabeth Warren(D-Mass.) was the chair and I worked very well with her,” McWatterstold CU Times in 2015.

The McWatters choice could throw the NCUA board into disarray,since it would leave Democrat Rick Metsger as the only boardmember. And Metsger's term expired last year; he may continue toserve until a replacement is nominated.

Meanwhile, the maneuvering that led to Cordray choosing Englishto head the agency is coming under congressional scrutiny.

Senate Homeland Security and Governmental Affairs Chairman RonJohnson (R-Wis.) has asked the Office of the Special Counsel toinvestigate English's transfer from OMB to the CFPB toward the endof the Obama administration.

Johnson said that the transfer allowed English to go from apolitical appointee, who could be easily removed to a careeremployee.

Many administrations have come under fire in the past for asimilar practice, known as “burrowing.”

In a letter Thursday to Special Counsel Henry Kerner, Johnsonalleged that the Office of Personnel Management rushed the approvalof English's transfer and failed to use proper procedures in doingso.